UK economy hit as people shop less than pre-Covidon October 21, 2022 at 7:36 am

Government borrowing rose in September from a year earlier.

Borrowing – the difference between spending and tax income – was £20bn last month, up £2.2bn from a year earlier, the Office for National Statistics (ONS) said.

It comes as retail sales volumes continued to fall in September.

“Consumers are now buying less than before the pandemic,” said Darren Morgan, director of economic statistics at the ONS.

“Drops were seen across all main areas of retailing, with falling sales in food stores making the largest contribution.”

The UK is borrowing billions of pounds to limit energy bill rises for households and businesses.

The figure for government borrowing last month is the second highest September borrowing since monthly records began in 1993, the ONS said.

However, that figure is lower than in September 2020, at the height of the coronavirus pandemic, when the government was borrowing to fund schemes such as furlough, it said.